This is an Income Strategy Recommendation for investors looking to invest in the US market via US options. This recommendation is similar to the last two month as the trade last month expire safe/profitable and has returned $3410 USD and still believe LOW is a good investment. The recommendation is buy LOW shares at a discount to market. The recommended trade is to sell put options on LOW with the intent to purchase the shares. This recommendation is designed for investor looking to generate monthly income with capital protection. Instead of buying LOW shares today at market at $23.05 we can place this trade which gives an equivalent entry price at $22.52 a discount of 2.3% and a price I am happy to buy the shares at.

Trade

Sell 22 contracts LOW March $23.00 Puts @ 58 cents

Buy 22 contracts LOW March $21.00 Puts @ 10 cents

Net Credit 48 cents

Shares per contract = 100

Trade Summary

Maximum Profit

$1,056 USD

Maximum Loss

$3,344 USD

Breakeven

$22.52

Return on Share Value

2.09%

Annualised Return on Share Value

25.04%

Return on Risk (ROR)

31.58%

If exercised we will purchase 2,200 shares at $23.00 which is a trade value of $50,600. When entering this trade you need to be aware and able to purchase the shares if exercised.

Brief Overview

Lowe’s Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States and Canada . The company provides a range of products and services for home decoration, maintenance, repair, remodelling, and property maintenance. It offers home improvement products in various categories, such as appliances, lumber, paint, flooring, building materials, millwork, lawn and landscape products, fashion plumbing, hardware, lighting, tools, seasonal living, rough plumbing, outdoor power equipment, cabinets and countertops, nursery, rough electrical, home environment, home organization, and windows and walls.

Reason for Trade

Technical Analysis – LOW is a buy at these levels with strong support at $22.00 and $23.00 and our breakeven is below this level.

Return on Risk above 30%

Capital Protection at 93.25%

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Chart

If you would like to place the LOW recommendation, please email me your account number and quantity of contracts.

To receive US Option Recommendations or to learn more about trading options register for our US Option Trading please contact us on 1300 368 316 or info@totaloptions.com.au

Telstra (TLS) this morning released their Half Year Results Announcement. We currently have an Income Strategy Option Trade Recommendation running on TLS and thought we would provide a brief summary of the announcement. The most important factor for this announcement that will affect our TLS trade recommendations are the details surrounding the dividend.

Dividend

Telstra declared an interim dividend of 14 cents per share, identical to that issued for corresponding period last year. The important dates for the dividend were announced today and are detailed below:

Ex-Dividend Date: 22nd February 2010

Record Date: 26th February 2010

Dividend Payable: 26th March 2010

Summary

Telstra Corporation Ltd has posted a 3.3 per cent drop in first half profit after more Australians household dumped their fixed telephony products for wireless or mobile. But Australia’s largest telcommunications company said it expects to see a modest improvement in its operations in the second half of 2009/10, as economic conditions improve. Telstra generated an attributable net profit for the six months to December 31 of $1.853 billion, down from $1.916 billion in the previous corresponding period. Total revenue was $12.342 billion, reflecting a drop of 2.9 per cent.

Additional Income

For investor looking to earn additional income on their TLS shares, the covered call strategy can be implemented to increase your returns. For detailed information on the Covered Call Strategy please request the Covered Call eBook.

To receive ASX Option Recommendations or to learn more about trading options please request the complete Introduction to Options Trading eBook by contacting us on 07 5504 2244 or info@totaloptions.com.au

The Income Strategy is an extremely powerful portfolio strategy that incorporates a combination of Stock and Options. It is designed to produce a consistent monthly income while providing capital protection for the portfolio.

The Income Strategy is very popular with Self Managed Super Fund (SMSF) and longer term wealth building individuals.

This is an Income Strategy Recommendation for investors looking to buy STO shares at a discount to market. The recommended trade is to sell put options on STO with the intent to purchase the shares. This recommendation is designed for investor looking to generate monthly income with capital protection. If you do not wish to own the shares we will send out a STO Bull Put Spread designed for short-term traders.

Trade

Sell 3 contracts STO September $15.55 Puts @ 50 cents

Buy 3 contracts STO September $13.67 Puts @ 5 cents

Shares per contract = 1061

Net Credit 45 cents

Trade Summary

Maximum Profit – $1432.35

Maximum Loss – $4551.69

Breakeven – $15.10

Return on Share Value – 3.01%

Annualised Return on Share Value – 36.12%

Return on Risk (ROR) -31.47

STO Daily Chart

To speak with a Total Options Advisor or receive ASX Option Recommendations please contact us on 07 5504 2244 or info@totaloptions.com.au

The Income Strategy is an extremely powerful portfolio strategy that incorporates a combination of Stock and Options. It is designed to produce a consistent monthly income while providing capital protection for the portfolio.

The Income Strategy is very popular with Self Managed Super Fund (SMSF) and longer term wealth building individuals.

This is an Income Strategy Recommendation for investors looking to buy BHP shares at a discount to market. The recommended trade is to sell put options on BHP with the intent to purchase the shares. This recommendation is designed for investor looking to generate monthly income with capital protection.

The trade is designed with 94.4% Capital Protection.

Trade

Sell 1 contracts BHP September $36.50 Puts @ 160 cents

Buy 1 contracts BHP September $33.00 Puts @ 50 cents

Net Credit 110 cents

Maximum Profit $1,100

Maximum risk to market $$2,400

Breakeven $35.40

Return on share value 3.01%

Annualised Return on Share Value 36.18%

Return on Risk 45.8%

Capital Protection 94.4%

Daily Chart

Weekly Chart:

To speak with a Total Options Advisor or receive ASX Option Recommendations please contact us on 07 5504 2244 or info@totaloptions.com.au

The Income Strategy is an extremely powerful portfolio strategy that incorporates a combination of Stock and Options. It is designed to produce a consistent monthly income while providing capital protection for the portfolio.

The Income Strategy is very popular with Self Managed Super Fund (SMSF) and longer term wealth building individuals

This is an Income Strategy Recommendation for investors looking to buy QBE shares at a discount to market. The recommended trade is to sell put options on QBE with the intent to purchase the shares. This recommendation is designed for investor looking to generate monthly income with capital protection. Instead of buying QBE shares today at market at $19.55 we can place this trade which gives an equivalent entry price at $18.60 a discount of 4.6% and a price I am happy to buy the shares at. Short-term traders can place a bull put spread, please contact us for more information on this trade.

Trade

Sell 1 contract QBE August $19.50 Puts @ 95 cents

Buy 1 contract QBE August $16.00 Puts @ 5 cents

Net Credit 90 cents

Trade Summary

Maximum Profit – $900

Maximum Loss – $2,600

Breakeven – $18.60

Return on Share Value – 4.62%

Annualised Return on Share Value – 55.38%

Return on Risk (ROR) – 34.62%

Capital Protection – 82%

Reason for Trade

QBE is going ex-dividend in early September.

Technical Analysis – QBE is a buy at these levels with strong support at $18.70 and our breakeven is below this level.

Fundamental Analysis – QBE is a well managed company and should be part of all blue chip portfolios

Return on Risk above 30%

To speak with a Total Options Advisor about this trade please call 1300 368 316

The Income Strategy is an extremely powerful portfolio strategy that incorporates a combination of Stock and Options. It is designed to produce a consistent monthly income while providing capital protection for the portfolio.

The Income Strategy is very popular with Self Managed Super Fund (SMSF) and longer term wealth building individuals.

Lihir Gold (LGL) offers excellent exposure to the gold price through its largely fixed cost open pit gold mine in PNG. The Lihir Island project is world class containing 22.9Moz of gold in reserve and 40.6Moz of gold in resource. LGL has commenced a major expansion program at Lihir Island which will see gold production rise to over 1.0Mozpa by 2012.

Trade

Sell 7 contracts LGL July $3.00 Puts @ 12.5 cents

Buy 7 contracts LGL July $2.50 Puts @ 1.5 cents

Net Premium Received 11 cents

Maximum Profit

The ideal result is for both options to expire worthless, so that maximum premium is retained from the credit spread.

= Net Premium Received

= Sold Put Premium – Bought Put Premium

= (0.125 – 0.015) x 7 contracts

= $770

Maximum Loss

This will occur if the share price is below the bought at expiry

= Difference between strike prices less net premium received

= $0.50 – $0.11

= $0.39

= $0.39 x 7 contracts

= $2,730

Breakeven

The breakeven is the entry price for the shares if you are exercised and purchase shares. The

To speak with a Total Options Advisor about this trade please call 1300 368 316

The Income Strategy is an extremely powerful portfolio strategy that incorporates a combination of Stock and Options. It is designed to produce a consistent monthly income while providing capital protection for the portfolio.

The Income Strategy is very popular with Self Managed Super Fund (SMSF) and longer term wealth building individuals.

Westfield Group (WDC) is a major retail property group holding 119 shopping centres with the gross value of investments under management being $69.4bn. The passive investment assets of the trusts will generate around 80% of group pre-tax net income. A portfolio of this size generates significant redevelopment work captive to the group. Management is very high calibre with an impressive track record.

Trade

Sell 3 contracts WDC July $11.00 Puts @ 62 cents

Buy 3 contracts WDC July $9.00 Puts @ 7 cents

Net Premium Received 55 cents

Maximum Profit

The ideal result is for both options to expire worthless, so that maximum premium is retained from the credit spread.

= Net Premium Received

= Sold Put Premium – Bought Put Premium

= (0.62 – 0.07) x 3 contracts

= $1,650

Maximum Loss

This will occur if the share price is below the bought at expiry

= Difference between strike prices less net premium received

= $2.00 – $0.55

= $1.45

= $1.45 x 3 Contracts

= $4,350

Breakeven

The breakeven is the entry price for the shares if you are exercised and purchase shares. The breakeven is the strike price fewer premiums received. Breakeven = $10.45.

The Income Strategy is an extremely powerful portfolio strategy that incorporates a combination of Stock and Options. It is designed to produce a consistent monthly income while providing capital protection for the portfolio.

The Income Strategy is very popular with Self Managed Super Fund (SMSF) and longer term wealth building individuals.

This is an Income Strategy Recommendation for investors looking to buy BSL shares at a discount to market. The recommended trade is to sell put options on BSL with the intent to purchase the shares. This recommendation is designed for investor looking to generate monthly income with capital protection. Instead of buying BSL shares today at market at $2.91 we can place this trade which gives an equivalent entry price at $2.82 a discount of 3.1% and a price I am happy to buy the shares at. Short-term traders can place a bull put spread, please contact me for more information on this trade.

Trade

Sell 8 contracts BSL December $3.00 Puts @ 20 cents

Buy 8 contracts BSL December $2.25 Puts @ 2 cents

Net Credit 18 cents

Shares per contract = 1332

Trade Summary

Maximum Profit – $1918.08

Maximum Loss – $6,073.92

Breakeven – $2.82

Return on Share Value – 6.21%

Annualised Return on Share Value – 74.52%

Return on Risk (ROR) – 31.58%

If exercised we will purchase 10,656 shares at $3.00 which is a trade value of $31,968. When entering this trade you need to be aware and able to purchase the shares if exercised. If this is not possible the bull put spread recommendation an alternative trade idea. For more information on the above trade please refer to the fundamental analysis on BSL.

Reason for Trade

Technical Analysis – BSL is a buy at these levels with strong support at $2.85 and our breakeven is below this level.

Fundamental Analysis – BSL is a well managed company and has great growth potential

The Income Strategy is an extremely powerful portfolio strategy that incorporates a combination of Stock and Options. It is designed to produce a consistent monthly income while providing capital protection for the portfolio.

The Income Strategy is very popular with Self Managed Super Fund (SMSF) and longer term wealth building individuals.

This is an Income Strategy Recommendation for investors looking to invest in the US market. The recommendation is buy LOW shares at a discount to market. The recommended trade is to sell put options on LOW with the intent to purchase the shares. This recommendation is designed for investor looking to generate monthly income with capital protection. Instead of buying LOW shares today at market at $22.91 we can place this trade which gives an equivalent entry price at $21.95 a discount of 4.2% and a price I am happy to buy the shares at.

Trade

Sell 44 contracts LOW January $22.50 Puts @ 80 cents

Buy 44 contracts LOW January $20.00 Puts @ 25 cents

Net Credit 55 cents

Shares per contract = 100

Trade Summary

Maximum Profit – $2420 USD

Maximum Loss – $8580 USD

Breakeven – $21.95

Return on Share Value – 2.44%

Annualised Return on Share Value – 29.28%

Return on Risk (ROR) – 28.21%

If exercised we will purchase 4,400 shares at $22.50 which is a trade value of $99,000. When entering this trade you need to be aware and able to purchase the shares if exercised.

Brief Overview

Lowe’s Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States and Canada. The company provides a range of products and services for home decoration, maintenance, repair, remodelling, and property maintenance. It offers home improvement products in various categories, such as appliances, lumber, paint, flooring, building materials, millwork, lawn and landscape products, fashion plumbing, hardware, lighting, tools, seasonal living, rough plumbing, outdoor power equipment, cabinets and countertops, nursery, rough electrical, home environment, home organization, and windows and walls.

Reason for Trade

Technical Analysis – LOW is a buy at these levels with strong support at $22.00 and our breakeven is below this level.

The Income Strategy is an extremely powerful portfolio strategy that incorporates a combination of Stock and Options. It is designed to produce a consistent monthly income while providing capital protection for the portfolio.

The Income Strategy is very popular with Self Managed Super Fund (SMSF) and longer term wealth building individuals.

This is an Income Strategy Recommendation for investors looking to invest in the US Stock Market. The recommendation is buy AT&T shares at a discount to market. The recommended trade is to sell put options on AT&T with the intent to purchase the shares. This recommendation is designed for investor looking to generate monthly income with capital protection. Instead of buying AT&T shares today at market at $27.56 we can place this trade which gives an equivalent entry price at $26.55 a discount of 3.66% and a price I am happy to buy the shares at.

Trade

Sell 37 contracts T January $27.00 Puts @ 65 cents

Buy 37 contracts T January $25.00 Puts @ 20 cents

Net Credit 45 cents

Shares per contract = 100

Trade Summary

Maximum Profit – $1665 USD

Maximum Loss – $5735 USD

Breakeven – $26.55

Return on Share Value – 1.70%

Annualised Return on Share Value – 20.40%

Return on Risk (ROR) – 29.03%

If exercised we will purchase 3,700 shares at $27.00 which is a trade value of $99,900. When entering this trade you need to be aware and able to purchase the shares if exercised.

Brief Overview

AT&T Inc. operates as a communications holding company. Its subsidiaries and affiliates provide the AT&T brand services in the United States and internationally. The company’s Wireless segment offers wireless voice communications services, including local wireless communications, long-distance, and roaming services with various post-paid and prepaid service plans. This segment also supplies various handsets and personal computer wireless data cards, as well as accessories.

Reason for Trade

Technical Analysis – AT&T is a buy at these levels with strong support at $27.00 which is where the stock has broken above resistance and looks to be heading higher.